It`s almost always a good time to start an ecommerce business. The internet has connected the world, and tools like Shopify allow anyone to get started, regardless of their technical ability. Keep in mind that some people are looking for privacy policies and may not want to do business with you if you don`t have one. A properly written privacy policy or statement not only minimizes your legal risk, but can also fulfill a marketing function and allow you to attract and retain the customers you`re looking for for security. In some cases, you may also need a business license to operate legally. This is particularly true for certain sectors such as alcohol or agriculture. You may also need a special license if you are starting a reseller business. Please keep in mind that this article is not intended to be official legal advice. No two companies are the same, and as laws change and boundaries are crossed, navigation becomes increasingly complex. It is always recommended to seek advice from a trained and licensed professional who can help you ensure that all your bases are covered for your unique situation.

While insurance isn`t always required, especially if you don`t have staff, it`s often a good idea. Many e-commerce businesses voluntarily purchase insurance for property damage and liability claims. Canada`s Anti-Spam Legislation (CASL) came into force on July 1, 2014. CASL significantly restricts how businesses send commercial electronic messages (CEMs). A CEM is defined as any electronic message intended to encourage participation in a commercial activity. An email message includes emails, text messages, VoIP phones, digital radio, digital television, and some aspects of social media. Under CASL, the sender of a CEM must have explicit or implied permission before sending a CEM to the recipient. While CASL does not prohibit the sending of CEMs, the law requires shippers to obtain prior consent before sending the CEM. Shippers must also provide identifying information in all CEMs.

This information must be valid for 60 days after the message is sent. All CEMs must also include an obvious opt-out mechanism. But e-commerce businesses should go beyond simply complying with e-signature law. It`s always best to take your fraud prevention measures. In short, starting a transactional website may seem easy, but it`s important to carefully plan what happens after the sale to avoid legal and tax issues. Cheers! This is not obvious. He should have the legal right to create such a license. Visit the Canadian government`s export website for more information on exporting: www.canadabusiness.ca/eng/105/165.

In addition, a company that opts for e-commerce must be aware of certain specific legal aspects, related, on the one hand, to the specificities of e-commerce itself and, on the other hand, to the fact that its customers can be located anywhere in the world. For the purposes of this article, we will focus on the rules that generally apply to all types of ecommerce. A future article will deal with specific provisions of the Consumer Protection Act (Quebec). In general, in order to comply with e-commerce consumer protection legal requirements, you must provide accurate information about the conditions and costs associated with a transaction to help customers make an informed decision about whether to make a purchase. When you create a policy, follow it to the letter. If you don`t, it`s an invitation to disaster, which involves not only possible legal trouble, but also damage to your reputation and goodwill. The penal code contains various prohibitions against gambling and makes little or no distinction between traditional and online gambling. An important exception to the complete prohibition on gambling allows provinces to conduct and manage gambling activities that would otherwise be illegal under the Criminal Code. With this exception, many government-sponsored lotteries and casinos have been established in Canada in recent decades.

In the online sector, this includes a sports betting site. While the use of offshore online gambling sites is undoubtedly quite widespread, given the uncertainty of the law, it is not possible to make a final decision on the legal aspects. It`s important to know the relevant laws so you understand when and how you can legally pass taxes on to customers – and when it comes to your own financial burden. Understanding these laws will help you evaluate products so that you always make a profit on every sale. Privacy is important in e-commerce to protect consumers and businesses from potential fraud, identity theft and more. Most states and many local jurisdictions have specific sales tax laws that apply to e-commerce businesses. If you sell internationally, you will also need to consider import duties and taxes. The International Trade Administration has a customs FTA instrument that you can use to assess your obligations. The Website Terms of Use set out the terms that apply to people who use your website. If you have a website, it`s important to include the terms of use on your website.

In particular, an agreement on the Website Terms of Use may protect you if your Website sells products or services, offers advice, and/or provides discussion or communication forums. What your terms of use cover depends on the nature of your business. You should check the terms of use of other websites to see other variations. You should also seek legal advice to create a user agreement that covers your business with respect to unauthorized use of your equipment, misuse, or theft. The new Copyright Modernization Act came into force in November 2012 and made changes to Canada`s copyright laws to adapt them to the digital economy. The new law contains stricter provisions to protect authors` rights and at the same time legalizes a number of joint activities for users. However, it is important to recognize that many of the new user-oriented provisions are intended for non-commercial purposes. Key provisions of the Act include: Data protection laws in the private sector generally require that any collection, use or disclosure of personal information require the consent of the individuals to whom the information relates. Individuals also have the overall right to withdraw consent to the continued use, storage or disclosure of their personal information, subject to legal and contractual requirements. We operate in a data-driven industry, so it`s important to ensure that you collect and manage data within the legal limits.

Some important areas to consider: Knowing and following the rules that apply to you as an online business owner is an important aspect of running your store. Knowledge of e-commerce laws is essential to protecting your brand and assets and maintaining positive relationships with your customers. A sole proprietorship differs from an LLC and other business structures in that it is less formal, puts your personal assets at risk, and has different limits on business growth.